In a significant development, Desco Infratech Limited has secured a major contract worth Rs. 44.77 crores for Last Mile Connectivity (LMC) and Direct Marketing Services (DMA) in the City Gas Distribution (CGD) sector. This contract, awarded by leading energy giants Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Torrent Gas Limited, marks an important milestone for the company in expanding its role in the growing CGD market across key states in India.

Scope of the Contract:
The contract is focused on establishing Last Mile Connectivity (LMC) and executing Direct Marketing Services (DMA) for city gas distribution in the states of Andhra Pradesh, Telangana, and Tamil Nadu. As cities and towns across India continue to increase their demand for natural gas for industrial, commercial, and residential use, the need for reliable and efficient infrastructure has grown substantially.

Desco Infratech’s involvement in this project will play a vital role in connecting the final consumers to the city gas network, enhancing the reach and efficiency of gas supply. The LMC and DMA services will be pivotal in ensuring seamless supply to consumers, ultimately contributing to a greener and more sustainable energy mix for the region.

Key Terms and Conditions of the Contract:
As per the terms of the contract, Desco Infratech will provide a range of services designed to ensure the proper installation, commissioning, and maintenance of the infrastructure for gas distribution in the designated areas. The project will require significant coordination between the company's technical teams and the regulatory authorities to meet the safety and operational standards of the CGD network.

Contract Value and Timeline:
The total value of the contract awarded is Rs. 44,76,88,160 (inclusive of GST), reflecting a considerable investment in the region’s growing infrastructure needs. This order is expected to be executed as per the timelines set out in the contract, which are aligned with the overall strategic objectives of the awarded entities. The timely execution of this project will ensure that Desco Infratech continues to deliver on its promises, while simultaneously meeting the increasing demand for natural gas in southern India.

Importance of the Order:
This contract is highly significant for Desco Infratech as it not only brings in a substantial order but also strengthens its position in the CGD sector, a market that is increasingly vital to India’s energy future. The company’s engagement in Last Mile Connectivity and Direct Marketing Services aligns well with India’s growing emphasis on clean energy, particularly natural gas. The contract also aligns with government initiatives to enhance clean energy adoption through improved infrastructure for city gas distribution, especially in tier-2 and tier-3 cities.

By securing this contract, Desco Infratech has proven its expertise and capability to handle large-scale infrastructure projects in city gas distribution, positioning itself as a trusted partner for major energy corporations like Indian Oil, Bharat Petroleum, and Torrent Gas.

Conclusion:
The award of this Rs. 44.77 crore contract to Desco Infratech signals a promising phase for the company. It strengthens the company's foothold in emerging infrastructure sectors such as city gas distribution and highlights its ability to collaborate with industry giants in executing large-scale, critical projects. The contract's successful execution will not only enhance the company’s reputation in the energy infrastructure space but also provide Desco Infratech with further opportunities to expand its service portfolio in the growing CGD market.

With this new project, Desco Infratech has solidified its position as a key player in India’s energy sector, and this is just the beginning of a new wave of growth and expansion in the city gas distribution market across southern India.

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